PNG`s Central Bank Is Turning Towards Blockchain

The central bank of Papua New Guinea (PNG) is working in collaboration with Australia to develop blockchain technology solutions that are expected to bring financial inclusion for the country`s unbanked population.

The central bank of Papua New Guinea (PNG) is working in collaboration with Australia to develop blockchain technology solutions that are expected to bring financial inclusion for the country`s unbanked population.

According to the report, 85% of the population in Papua New Guinea, an emerging economy, located between Asia and Australia, is unbanked. The PNG serves as the financial regulator and the central bank in the country. The country is known for its rugged and diverse terrain that is a barrier in bringing financial services to much of its population. In addition, only 20% of the country`s population have access to electricity, while mobile phone penetration is at 50%.

To achieve inclusion in areas such as finance and banking, country`s Central Bank launched a new program to research blockchain technology in May this year.

“I see potential for Papua New Guinea to leapfrog using this [blockchain] technology to a new world economy.”, said PNG central bank governor Loi Bakani, in an interview with cryptocoinnews.com.

The central bank signed a memorandum of understanding (MoU) with the PNG Governance Facility (PGF), an Australian government funded program that aims to strengthen development ties with the Government of Papua New Guinea.

This collaborative project also sees the Australian Government providing a funding of AUD $200,000. The money is to be used to research the possible applications of blockchain technology.

“Together with the Central Bank, we will bring to the PNG a curated group of global Blockchain experts in financial inclusion, identity, land registration, remittances, security, regulations, and digital government. PNG is ready for digital government on the Blockchain.”, commented Prof. David Kavanamur, PNG Governance Facility knowledge platform director.

The central bank is reportedly piloting blockchain solutions that will be scaled commercially in the near future.